‘Dividend is in my blood’: Vedanta chairman signals unbroken payouts post demerger

New Delhi: Vedanta Group chairman Anil Agarwal on Tuesday reaffirmed his commitment to steady shareholder payouts even as the group embarks on a $20 billion expansion programme following the proposed demerger of Vedanta Ltd into multiple listed entities.

“Dividend is in my blood,” Agarwal said, underlining that shareholder returns will remain a priority alongside capital investment.

The National Company Law Tribunal has approved Vedanta’s plan to split the metals-to-oil conglomerate into five separate listed companies, a move Agarwal said is aimed at sharpening focus, unlocking value and ensuring uninterrupted cash returns while continuing aggressive capital expenditure. After the demerger, the base metals business will remain under Vedanta Ltd, while Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy housing the oil and gas business will operate as independent listed entities. The process is expected to be completed by March 2026.

Vedanta has been among India’s top dividend-yielding large-cap stocks in recent years. In the current FY26, the company has declared a first interim dividend of Rs 7 per share, amounting to Rs 2,737 crore, and a second interim dividend of Rs 16 per share, totalling Rs 6,256 crore. In FY24, Vedanta paid a cumulative Rs 29.50 per share through multiple interim dividends, while total payouts in FY25 were around Rs 46 per share. Agarwal said dividend payouts would continue across companies post-demerger.

Outlining growth plans, Agarwal said Vedanta will invest $20 billion over the next four to five years, including $4 billion each in oil and gas and aluminium, $2 billion in zinc and silver, $2.5 billion in power, and the balance in iron ore, steel and other businesses. Silver production is targeted to more than double to 1,500 tonnes by 2030 from about 700 tonnes currently, while lead output is planned to rise to 2 million tonnes per annum from 400,000 tonnes.

Zinc production of 1.13 million tonnes will be expanded to 2 million tonnes at Hindustan Zinc Ltd, with another 1 million tonnes planned from Vedanta’s South Africa operations, positioning the group among the world’s largest producers. Aluminium capacity is set to double from the current 3 million tonnes, supported by captive mines and renewable energy-linked greenfield projects. Vedanta is also setting up a 510,000-tonne DAP fertiliser plant in Rajasthan, which will be expanded to 1 million tonnes in the near future.

In oil and gas, Agarwal said recent policy changes have improved the investment climate. Production is targeted to rise to 300,000 barrels per day in the short term and up to 0.5 million barrels per day over the next four to five years. The iron ore and steel business will focus on green steel with a proposed capacity of 15 million tonnes, while the power business is targeting 25,000 MW of capacity, including thermal and renewable energy.

Agarwal said the demerger aligns Vedanta with global pure-play resource companies. The group’s Rs 48,000 crore debt will be allocated among the demerged entities based on cash flows.

Each company will have an independent board and professional management, with promoters holding around 50 per cent stake, while capex-led growth and dividends continue post-demerger.